ISLAMABAD: The Competition Commission of Pakistan (CCP) has imposed a penalty of Rs40 million on Al-Ghazi Tractors Ltd (AGTL) for violating competition law and misguiding consumers.
The two-member bench headed by CCP Chairman Dr Kabir Ahmed took the decision after an inquiry over advertisements floated in January 2022 by AGTL claiming its new Holland tractor models offered “up to 30 per cent extra diesel savings compared to any competitor’s tractors”.
The advertisement cited a report by the Agricultural Mechanisation Research Institute (AMRI), Multan, as the basis of its claim, but when CCP investigated, it found that AMRI had not issued any report supporting this claim.
The CCP inquiry found that AMRI had warned AGTL to stop using its name for false claims and to retract the advertisement.
The CCP had issued a show-cause notice to the company in January 2024, and the AGTL challenged it in court.
The CCP noted that farmers across Pakistan, especially, often make purchasing decisions based on savings and efficiency, and for them, a claim like “up to 30pc extra diesel savings” can mean the difference between affordability and hardship.
The AGTL claim was declared as false and misleading.
Published in Dawn, May 14th, 2025
